Increasing repayment on which loan improves experience?

  • Erstellt am 2024-10-15 12:15:55
K

Kieder88

2024-10-15 13:40:13
  • #1
Thank you. I will check again whether we can make a free repayment change for all loans. If that is the case, the loan with the highest interest rate, understood.
 
K

Kieder88

2024-10-15 20:07:43
  • #2
Would it possibly also make sense to increase the repayment for loan 3 in order to have a lower outstanding balance? Loan 1 will be paid off anyway and no longer has any outstanding balance.
 
N

nordanney

2024-10-15 20:54:18
  • #3

Once the loan with the highest interest rate is paid off, you switch to the second highest.

But first, check whether you are even allowed to do this. It must be explicitly agreed upon. Normally – unless specifically agreed otherwise – this is not possible, or if it is, it comes at a cost (and that then isn’t worth it).
 
Z

Zaba123

2024-10-16 11:23:06
  • #4

Nobody asks how high the current repayment rate is and where the maximum repayment limit is?
What does your contract say?

If it goes from 2% or 3% to 5%, then you can theoretically increase all repayments.
After all, we are talking about only €350k which has probably been running for 5 years, right?
Since the increase in repayment probably won’t hurt you now.
 
G

Grundaus

2024-10-16 13:25:12
  • #5
Regarding the interest, I wouldn’t pay off anything extra and would save the remaining money, depending on risk tolerance in ETFs. Even if you don’t save anything with the interest rate arbitrage, you are significantly more flexible. Having less debt but also less invested money is mental accounting.
 
K

Kieder88

2024-10-16 14:41:08
  • #6
After consulting with the bank, I cannot adjust the repayment rate for loan 1. So it will continue until 2031 and then be paid off, possibly with special repayments. However, for loan 3, an increase in the repayment rate is possible. Currently, the repayment rate is 2% and I can adjust it up to 5%. I need to calculate everything now, but I will make an increase then. I could not find anything about adjusting the repayment rate in any of my bank documents.
 

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